System overview
Last updated
Last updated
Escher is a liquid staking protocol designed to bring chain abstraction, enhanced liquidity, and true interoperability to Proof-of-Stake (PoS) ecosystems. At its core, Escher enables users to stake tokens from one chain and receive a liquid staking token (LST) on another, all while earning staking rewards in the background.
Escher's architecture is built on three fundamental components:
The chain abstraction layer allows users to interact with Escher from any supported chain. Through integrations with technologies like Union and advanced cross-chain messaging protocols, Escher abstracts away the complexities of cross-chain operations. Users can stake native tokens from their preferred environment (e.g., Ethereum, Cosmos) and receive liquid staking tokens on the same chain or another supported one.
This is the backbone of Escher's staking logic. It manages staking operations, validator selection, reward distribution, and withdrawal mechanisms. It also ensures staking security and network health by implementing validator set diversification and penalties. Escher supports multiple tokens and chains, optimizing delegation across validators through direct protocol integrations.
The Injection Protocol is Escher's economic innovation. It captures fees and yields generated across DeFi protocols (e.g., LP fees, bribes, rewards) and reinjects them into the staking pool without minting new LSTs. This increases the intrinsic value of each LST over time, raising the APR for holders beyond the base staking yield.
Cross-Chain Flexibility: Stake on one chain, receive LST on another
DeFi-Ready LSTs: Tokens like eBABY and eU can be used across DeFi protocols (e.g., Uniswap, Pendle, Euler)
Instant Issuance & Low Unstaking Times: Get LSTs instantly; unstake with short cooldowns
Modular Architecture: Support for multiple networks and assets through standardized relayer components and direct protocol integrations
Escher.Finance utilizes the Union framework and advanced cross-chain messaging to provide a seamless liquid staking experience across different chains and ecosystems. The architecture enables users to stake assets from an EVM chain to another chain (e.g., Chain C) through a modular and fully chain-abstracted approach. This solution leverages direct protocol integrations and optimized cross-chain communication for efficient and scalable operations.
Users initiate liquid staking by interacting with a smart contract deployed on the Union chain. This contract acts as the gateway to the liquid staking protocol and manages all interactions between the user's EVM/altvm wallet and the target staking chain. The system is designed with a simplified architecture that eliminates the need for complex intermediate controllers—interactions are streamlined and managed directly through the Union chain contract.
Upon receiving the staking request, the Union chain's liquid staking protocol is triggered. This protocol:
Secures the user's assets on Union through cryptographic commitments
Issues LSTs representing the staked assets, which the user can use across DeFi protocols in the EVM ecosystem or beyond
Manages the entire staking lifecycle through direct protocol integrations
The liquid staking protocol leverages direct cross-chain messaging and protocol integrations to stake the user's assets onto Chain C. This process is fully automated:
The Union chain communicates directly with the target chain through optimized messaging protocols
Staking operations are executed through native protocol integrations on the destination chain
Users remain on their original EVM chain and do not need to manually interact with Chain C
All cross-chain communications are handled seamlessly in the background
Users receive liquid staking tokens on their original chain (e.g., Base or Arbitrum) while their staked assets are securely delegated to validators on the destination chain (e.g., Celestia or Berachain). The user:
Does not need additional wallets or gas tokens
Interacts only with their EVM/altvm wallet and the Union smart contract
Enjoys seamless cross-chain staking without manual involvement in staking processes on other networks
Benefits from full chain abstraction while maintaining security and decentralization
This architecture enables Escher to provide a unified liquid staking experience across diverse blockchain ecosystems. Users can stake assets from one chain to another without leaving their preferred network, thanks to the seamless integration of direct protocol communications and advanced cross-chain messaging. The removal of intermediate account abstractions simplifies the architecture while maintaining the same level of functionality and security.
The system's modular design ensures that new chains and protocols can be easily integrated as the ecosystem grows, providing users with expanding opportunities for cross-chain liquid staking without compromising on user experience or security.
